Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) Analysts Just Cut Their EPS Forecasts Substantially
One thing we could say about the analysts on Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business. Shares are up 4.8% to US$0.86 in the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.
After the downgrade, the consensus from Pieris Pharmaceuticals' twin analysts is for revenues of US$12m in 2023, which would reflect a stressful 29% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$0.70 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$17m and losses of US$0.64 per share in 2023. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
Check out our latest analysis for Pieris Pharmaceuticals
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Pieris Pharmaceuticals' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 36% to the end of 2023. This tops off a historical decline of 8.3% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 19% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Pieris Pharmaceuticals to suffer worse than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Pieris Pharmaceuticals. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Pieris Pharmaceuticals' revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Pieris Pharmaceuticals, and we wouldn't blame shareholders for feeling a little more cautious themselves.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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